Should You Opt Out of the 2010 Estate Tax? Why Real Estate Holdings May be Key to Making the Right Decision

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Individuals who own real estate with a negative cost basis can take advantage of certain key planning opportunities to eliminate the phantom gain. And, for decedents who died in 2010, owning real estate, the estate may actually be better off opting into the estate tax regime and receiving a step-up in basis for income tax purposes if real estate holdings have a negative cost basis.

In this webinar, Trusts & Estates will examine the unique planning opportunities that are available to individuals who own negative basis real estate to minimize the estate and gift tax on those holdings. The program will also examine how to evaluate the real estate owned at death in making the decision of whether to opt in or opt out of the 2010 estate tax regime.

What this webinar will cover

  • A review of the partnership special allocation rules under IRC Sections 704(b) and 704(c).
  • How real estate assets with a negative cost basis affect the decision to opt in or opt out of the estate tax for decedents who died in 2010.
  • How to use the preferred partnership freeze techniques to eliminate phantom gain on real estate assets under IRC Section 2701 on viable real estate assets that have mortgage liabilities that exceed the property’s income tax basis.
  • How to shift all future appreciate in value of the real estate without paying an estate tax—while keeping the gift tax to a minimum.

Our speakers:

Jerome Hesch, Of Counsel at Carlton Fields in Miami. Jerome has extensive experience as a tax and estate-planning consultant. His practice also includes the use of captive insurance companies, financial derivatives and energy tax credits. A member of ACTEC, Jerome has published extensively, including several Tax Management Portfolios and a law school casebook on federal income taxation.

Stephen Breitstone, Partner at Meltzer Lippe in Long Island. Stephen heads the Tax Law Group at Meltzer Lippe which represents clients globally. He does sophisticated tax and estate planning for several large New York Real estate families, Wall Street investment bankers, hedge fund managers, corporate executives, and others. He has pioneered many novel and sophisticated tax planning techniques, many of which have come into widespread use.

TAGS: Research
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